The Star Online > Business
Thursday April 18, 2013
MISC under selling pressure
Opportunities open as counter trades below RM5.50 buyout price
By GURMEET KAUR
PETALING JAYA: MISC Bhd, which is the subject of a takeover bid by its parent company, saw some selling pressure at below the RM5.50 buyout price, leading to opportunistic investors punting on the stock.
As a result, a whopping 17.09 million shares changed hands at prices ranging from RM5.30 to RM5.46. The counter closed at RM5.37, 1.8% below the RM5.50 price.
Still, investors buying MISC shares were aware of the risk of buying below the buyout price.
“It isn't clear why there's so much selling going on,” said one investor, who picked up some four million MISC shares at prices between RM5.36 and RM5.40 individually.
Another investor said that this was an easy wager to make. “If indeed the Employees Provident Fund (EPF) decision is the decisive stroke, then surely this deal would be done at RM5.50. You have a 10-sen difference here, which is about a 1.8% return.”
These investors are, therefore, puzzled as to why some shareholders were dumping the stock. To be noted is the fact that the offer expires this Friday.
To recap, on April 11, the EPF, which held the largest minority block at 9.5% in MISC, had accepted Petroliam Nasional Bhd's (Petronas) revised offer of RM5.50.
The national oil company had raised the offer by 20 sen from the original RM5.30 made at end-January, following resistance from the EPF, which had held out for a higher price.
With the EPF's acceptance, Petronas' total shareholding in MISC now stood at 79.77% short of another 10.2% equity interest to touch the required 90% shareholding level for the offer to become unconditional.
Although the EPF has given its support to the deal, there is an off chance that other minority shareholders could rally together to fight for a higher price. MISC's second-largest minority group after the EPF is Permodalan Nasional Bhd (PNB), which has a 6.35% equity interest via its various unit trusts.
In the event PNB does not support the deal and had the support of at least another 3.85% of minority shareholders, then the deal could, theoretically, fail.
However, some investment bankers rule this out and reckon that the Government-linked fund would eventually support the deal. It is noteworthy that PNB has not come out to say how it viewed the MISC buyout offer, even after it had been revised.
MISC's other minority shareholders are the Penang Development Corp and Pacific Mutual Fund Bhd, which hold a 1.3% and 0.09% interest, respectively. They had also previously said that Petronas' offer undervalued the company.
Source/Extract/Excerpts/来源/转贴/摘录: The Star Online
Publish date: 18/04/13